India-based on-demand ride service Ola is raising $2bn in funding from investors including internet group Tencent and telecommunications conglomerate SoftBank, Bloomberg reported today, citing a person familiar with the matter.
The news came on the same day as two sources familiar with the matter told the Economic Times that Tencent has invested $400m in Ola at a $3.8bn valuation, doubling the amount of capital so far secured in the series G round to $800m.
The latest round had already included $250m from SoftBank in November 2016 and $150m pulled in this year from investors including RNT Capital Advisors, Falcon Edge Capital and Tekne Capital Management, according to ET.
Formerly known as Olacabs, Ola operates a ride hailing platform that spans more than 100 Indian cities, and which is supported by a network of more than 450,000 vehicles, including taxis, luxury cars, auto-rickshaws and shuttle buses. It is responsible for about 1.5 million rides per day, ET stated.
The company had secured approximately $1.25bn prior to the latest round, $210m of which came from SoftBank in 2014.
SoftBank returned for a $400m series E round in early 2015 led by DST Global and backed by GIC, Falcon Edge, Tiger Global, Steadview Capital and Accel.
Ola’s China-based counterpart Didi Chuxing joined SoftBank for the company’s last round, a $500m series F that closed later the same year. Ola’s past investors also include Baillie Gifford, ABG Capital, Fii Ltr Focus Fund, JS Capital, Parkwood Bespin and Vanguard Group.